Goldman Sachs has upgraded a raft of stocks to 'buy.' Here are 10 of its picks

Published Sun, Oct 24 202110:43 PM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Analysts at Goldman Sachs have upgraded a raft of stocks to "buy" over the past few weeks, across sectors including semiconductors, energy and pharmaceuticals in the U.S., Europe and Japan. Here are 10: Goldman upgraded U.S. semiconductor designer and manufacturer Broadcom to buy from neutral in an Oct. 14 research note, for its "scale, pricing power, and strong execution to garner a premium." While the stock has underperformed the median in Goldman's coverage over the past year, it still has "room to run," the bank noted. The bank upgraded Italian luxury brand Prada to buy in an Oct. 11 research note, with analysts expecting it to outperform its peers. "Prada now has the platform to leverage its iconic brand," Goldman stated. In particular, the bank looked at the price of its handbags and said it has room for increases among higher-end products costing around 3,000 euros ($3,482). In an Oct. 6 research note, Goldman upgraded U.S. steelmaker Cleveland-Cliffs to buy, given its "attractive" valuation following underperformance. However, the analysts said this underperformance was unwarranted due to a reduction in debt and "strong free cash flow generation." German skincare company Beiersdorf , which makes Nivea products, was upgraded by Goldman on Sept. 9. "Beiersdorf's turnaround story under the new CEO is not priced in … [and] margin expectations implied by consensus and guidance are too conservative in our view," the bank said. It added that sales are "bouncing back" post-pandemic. Cancer drug company PMV Pharmaceuticals was upgraded by Goldman to buy in a Sept. 22 note to investors. In particular, the company's developments around a tumor protein known as p53 are set to give the stock "meaningful upside," the bank said. Oil firm Delek US Holdings was upgraded to buy by Goldman on Oct. 14. It has underperformed peers, the analysts said, but it is "underappreciated" given factors including its convenience stores, where Goldman sees "attractive" earnings before interest, taxes, depreciation and amortization. In Japan, Goldman upgraded high-end cosmetics company Shiseido to buy on Sept. 11, saying its operating profit estimate for 2022 is 12% above consensus. Goldman rates its CEO Masahiko Uotani who turned the company around after he was appointed in 2014. "We believe that the current phase is one during which Mr. Uotani will enhance his management track record," the bank added. Shiseido is the bank's top stock in the home and personal care category in Japan. Goldman upgraded Spanish renewable energy firm Acciona Energia to buy on Sept. 6, saying the company has "standout features," such as quadruple its average electricity output . The bank also likes its global operations in the U.S., Australia and beyond , "good diversification," and "solid track record with proven evidence of high returns." The bank upgraded U.S. security company Allegion to buy last month, saying it is "high quality" in a Sept. 9 research note. Allegion, which supplies schools, is set to benefit from education stimulus, Goldman said — the Biden administration allocated nearly $170 billion to schools and colleges in March as part of a Covid-19 relief package. Goldman upgraded Arezzo & Co , a Brazilian fashion group with a market capitalization of $1.6 billion, to buy on Sept. 21. Although the stock is up 22% year-to-date, the bank said it is "now more confident on the potential for upside to revenue and margin estimates, as management executes on its vision of creating a diversified brand portfolio across apparel and footwear."

A trader works at the Goldman Sachs stall on the floor of the New York Stock Exchange.

Brendan McDermid | Reuters

Analysts at Goldman Sachs have upgraded a raft of stocks to "buy" over the past few weeks, across sectors including semiconductors, energy and pharmaceuticals in the U.S., Europe and Japan.

Here are 10: